MACROECONOMIC POLICIES, IMF ASSISTANCE AND POTENTIALS OF THE FINANCIAL CRISIS IN BiH
Keywords:
firm macroeconomic policies, IMF adjustment programmes, financial crises, prevention of crisisAbstract
The paper treats the issues of firm and flexible economic policies bases in emerging markets by which the prevention and resolution of financial crises would be done. If problems arise in the financial sector then there appears the question of adequacy of the economic policy, adjustment programmes definition and economic policy redefinition. The countries resolve the problems caused by the irreversible capital flows on the basis of adjustment programmes in whose creation IMF actively takes part and assists. At the same time these programmes are financially supported and most often conditioned. The paper considers the character and efficiency of the adjustment programmes and it deals generally with the effects that IMF assistance exerts on the member countries and with alternative behavior of the Fund member countries being in position to access the adjustment programmes. Special attention is paid to macroeconomic situation in BiH from the point of view of potentials for possible rise of financial crises. In wider terms, the paper analyzes in more details the state and behavior within the framework of the banking system as dominant in the total financial area in BiH. The credit activity, balance proportions in the banking sector and money and capital flows within the banks and abroad, credit policies and other issues indicate the critical points and processes that might have unfavorable impact on the stability of the banking and consequently on the whole financial system in BiH.References
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